Impact of transition strategies on macroeconomic outcomes
| Authors | |
|---|---|
| Year of publication | 2013 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 11th Internatinal Conference Economic Policy in the European Union Member Countries: Selected Papers |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | transition strategy; transformation; shock therapy; gradualism; macroeconomic outcomes |
| Description | In most of the former socialist countries, economic transformation from the centrally planned to the market economy is over. However, the process of transformation itself still attracts considerable attention. One of the hottest topics of the discussion is the speed of the overall process and its impact on macroeconomic outcomes. This paper deals with the relation of applied transition strategies and real GDP growth, inflation and unemployment. Using different classifications of transition strategies based on historical analysis and cluster analysis of the EBRD transition indicators we conclude that countries which applied the shock therapy (characterized by fast implementation of reforms) enjoyed higher GDP growth and lower inflation rate. |
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